It was the Spring Economic Update yesterday, and this was less of a mini-budget than in previous years, but still had a few new elements. Overall, yes the deficit is lower than anticipated because growth was greater than projected, but in true Liberal fashion, Mark Carney and the government added new spending measures that took up some of that room, both with some previously announced measures like the “pause” on the excise fuel tax, and new measures like $6 billion in incentives for skilled trades workers.
Some highlights:
- That $6 billion for skilled trade workers includes support during training and a completion bonus (as half of those who start apprenticeships don’t finish)
- There is a shift toward attracting more foreign investment.
- There will be a small break in CPP deductions for the next year.
- Canada is making progress on diversifying to non-US export markets.
- There is money for sports, the Financial Crimes Agency is finally getting its implementation legislation, and crypto ATMs are being banned.
- The Defence Investment Agency is getting more structure and oversight, and there is also more funding for military trades.
- They plan to resurrect the ability for Canada Post to search and seize mail.
- There are new tax credits for enhanced oil recovery (because Carney has full-on decided he no longer cares about the environment.)
- There are promises for $4.3 billion in First Nations education, Inuit food security, and Indigenous child welfare.
- More odds and ends here.
In pundit reaction, David Reevely considers this to be Carney buying time until his big projects can start to pay off. Lindsay Tedds delves into the issues surrounding the so-called “Sovereign Wealth Fund.” Kevin Carmichael gives some thought to the deficit position, as well as the choices that Carney is making with what they are putting additional resources into. Susan Delacourt ponders the juggling act of the government both trying to build long-term, while still looking for tangible effects in the here-and-now. Paul Wells looks at the context of some of the numbers presented, and the government’s “fiscal prudence” back-patting.
Housing items in today's federal economic statement. Delighted to see they're planning to move on reforms to make it easier to build multiplexes! This is aligned with one of our recommendations from our January report.
— Dr. Mike P. Moffatt (@mikepmoffatt.bsky.social) 2026-04-28T21:46:33.000Z
Well, this isn't even remotely true (as @lindsaytedds.bsky.social and I discussed in my latest episode).
— Dale Smith (@journodale.bsky.social) 2026-04-29T02:20:59.692Z
Ukraine Dispatch
Ukraine says that it shot down over 33,000 Russian drones last month, which is a new monthly record. Ukrainian drones have been causing fires at Russia’s Tuapse roil refinery. Ukraine is now trading diplomatic blows with Israel over ships carrying stolen grain docking in Israeli ports.
Good reads:
- Mark Carney has been invited to attend the European Political Community summit in Armenia next month.
- Sean Fraser says he is open to expanding the definition of “sexual deepfake” as part of the Criminal Code penalties around them.
- The federal government has unveiled the “six pillars” of their forthcoming digital asbestos strategy, albeit without any actual descriptions of what they mean.
- Health Canada has authorised generic Ozempic to be sold in Canada.
- Here is the text of the King’s speech to Congress (which reads a lot like one very long subtweet about American no longer being a proper democracy).
- Wab Kinew continues to threaten social media giants, but it’s unclear what powers he actually has. Other provinces are also indicating they want to follow suit.
- An Alberta lawyer says the premier is exploiting a loophole in provincial law with her new website on her planned referendum questions.
- Tyler Dawson points to ways in which Alberta will not be better off economically if they separate, in spite of the technicolour fantasies of separatists.
- Mike Moffatt suggests that Canada could look to an Australian-style tax incentive for seniors to downsize homes to free up supply (which doesn’t help with building).
- My column points out the ways in which Poilievre is completely wrong about the economy, but nobody is actually willing to correct him.
Odds and ends:
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